Title
Approval of an Ordinance Authorizing the Issuance by the City of Olympia of One or More Series of Tax-Exempt Obligations (the “Bonds”) Not to Exceed $25,000,000 to Finance Capital Improvements for the expansion of the Hands On Children’s Museum and Approving Other Related Matters - FIRST AND FINAL READING
Recommended Action
Committee Recommendation:
At their May 19, 2025 meeting, the Finance Committee approved the Funding Strategy recommendation and Bond Sale for the expansion of the Hands On Children’s Museum (HOCM), including the issuance of tax-exempt bonds to finance the proposed capital improvements and land acquisition.
City Manager Recommendation:
Move to approve on first and final reading the Ordinance for the issuance by the City of Olympia of one or more series of tax-exempt obligations (the “Bonds”) for the expansion of the HOCM.
Report
Issue:
Whether to approve on first and final reading an Ordinance authorizing the issuance by the City of Olympia of one or more series of tax-exempt obligations (the “Bonds”) not to exceed $25,000,000 to finance capital improvements for the expansion of the HOCM and approving other related matters.
Staff Contact:
Debbie Sullivan, Assistant City Manager, 360.753.8499
Mark Barber, City Attorney, 360.753.8223
Presenter(s):
Michael Githens, Finance Director
Background and Analysis:
The HOCM opened in 2012. The original Public Facilities District was formed in 2003. The Hands On Children’s Museum (HOCM)is a destination museum for national and international visitors.
More than 315,000 visitors go to HOCM annually. The purpose of the HOCM expansion project is to alleviate overcrowding, provide sufficient restrooms, more space for staff, materials, and equipment, and program needs and new exhibits. The current HOCM has less square footage than any children’s museum serving 300,000 or more people annually. The proposed expansion will double exhibit square footage from 12,000 to 24,000 square feet. Limited Tax General Obligation (LTGO) municipal bonds will be issued to finance the HOCM expansion project.
The bond sale will provide $20.5 million in project funding to construct the proposed museum expansion. The Bond Sale will be used to purchase land from the Port of Olympia and construct the building. The bond will be paid back using Public Facilities District (PFD) funding, with HOCM providing a $1.7 million security fund to cover any costs above PFD revenues. The $20.5 million bond will have a repayment term of 30 years, with an average annual payment of approximately $1.5 million. The City Council approved moving forward with the bond sale at its June 17, 2025 meeting.
Climate Analysis:
The HOCM expansion project will not have a significant negative impact on greenhouse gas emissions. HOCM is a national green museum, utilizing green technology through solar power and other green energy saving measures.
Equity Analysis:
The HOCM expansion provides an opportunity to enhance early childhood learning opportunities in the arts and sciences for all, and to contribute and enhance the quality of life for all Olympia area residents, while also contributing to economic vitality through tourism. HOCM also offers free and reduced-price programs for low income families.
Neighborhood/Community Interests (if known):
HOCM has historically had strong community support and approval.
Financial Impact:
The sale of Limited Tax General Obligation (LTGO) municipal bonds will provide $20.5 million in project funding to construct the proposed museum expansion. The bond will be paid back using Public Facilities District (PFD) funding, with HOCM providing a $1.7 million security fund to cover any costs above PFD revenues. The $20.5 million bond will have a repayment term of 30 years, with an average annual payment of approximately $1.5 million.
Options:
1. Move to approve on first and final reading the Ordinance for the issuance by the City of Olympia of one or more series of tax-exempt obligations (the “Bonds”) for the expansion of the HOCM.
2. Direct staff to make changes to the Ordinance.
3. Do not approve the Ordinance.
Attachments:
Ordinance